"Gold reserves refer to the amount of gold reserves held by the country, the central bank or other institutions. These institutions usually convert part of their foreign exchange reserves into gold as a way of value preservation and reserves.
The main role of gold reserves is to protect the wealth of the country from external economic shocks. The price of gold usually rises when foreign exchange markets fluctuate or international trade goes wrong, so having enough gold reserves can help countries stabilize their economies and monetary systems.
In addition, gold reserves can also be used for international payments, especially during financial crises. Some countries may need to borrow or make payments in the international market, and holding sufficient gold reserves at this time can enhance their credit and stability.
In general, gold reserves play an important role in the international financial system and are one of the key factors for a country's financial stability and economic development. "